If you need to sign a document electronically, the first question is not simply “How do I create a digital signature?” The more important question is: what type of digital signing does the document, portal, or recipient actually accept?
In India, a digital signature can be created using a Digital Signature Certificate (DSC), while eligible electronic-signing workflows can use an approved eSign service. These two methods can both produce an electronically signed document, but they are designed for different operating situations.
For example, a company filing on a regulatory portal may need a DSC registered or connected to that portal, while a business sending an agreement to hundreds of customers may be better suited to an integrated eSign workflow. The correct choice therefore depends on the transaction, the accepting platform, the signer and how frequently signing is required.
Updated: 02 October 2026
How Can You Create a Digital Signature?
There are two practical routes that businesses commonly need to understand:
| Method | How the signature is created | Typical operating model | Consider it when |
|---|---|---|---|
| Digital Signature Certificate (DSC) | A certificate is issued after the applicable identity verification process and is used to create digital signatures. | Reusable signing credential during its validity period. | A portal, filing or workflow specifically requires DSC-based signing. |
| Approved eSign service | The signer is authenticated through an approved eSign workflow and the electronic signature is created for the transaction. | Online, transaction-based signing without requiring the signer to manage a long-term signing token. | A document platform or recipient supports the applicable eSign service. |
| Signature image | A scanned or photographed handwritten signature is inserted into a document. | Visual mark only. | Only where the receiving process specifically permits this form of approval. |
The third option is where many users get confused. Typing your name, drawing a signature or placing a PNG/JPEG image of your handwritten signature on a PDF is not the same technical process as creating a DSC-based digital signature or using an approved eSign service.
The CCA describes eSign as an online electronic-signature service using e-KYC-based authentication and a licensed Certifying Authority ecosystem. Its process includes signer consent, a DSC issuance request, signature creation and a digital audit trail.
DSC or eSign: Which One Do You Actually Need?
Do not start by choosing the signing technology. Start with where the signature will be used.
| Your requirement | Usually investigate | Why |
|---|---|---|
| MCA/company or LLP filing | DSC | The filing workflow may specifically require certificate-based signing. |
| Government e-Tender / e-Procurement | DSC | The particular tender portal determines its accepted signing method. |
| DGFT filing | DSC | DGFT workflows use certificate-based authentication and validation requirements. |
| Repeated compliance filing | DSC | A reusable certificate is more aligned with recurring signer-controlled filing workflows. |
| Customer agreement signing | eSign, if accepted | Useful where customers need to sign remotely without obtaining and managing a DSC. |
| Employee/vendor onboarding | eSign, if supported | Suitable for transaction-based signing integrated into an onboarding workflow. |
| High-volume document signing | Signing/eSign platform | The workflow can be designed around repeated document generation, authentication, signing and audit records. |
| Portal does not state which method is accepted | Check the portal requirement first | Legal recognition alone does not mean every portal accepts every electronic signing method. |
The accepting system is the deciding factor. A business should not purchase a DSC simply because it needs “a digital signature” if its actual requirement is an integrated eSign workflow. Conversely, an eSign service should not be treated as a replacement for a DSC where a particular filing portal requires DSC-based authentication.
How to Create a Digital Signature Using a DSC
If your intended application requires a DSC, the process normally follows this sequence:
- Identify the required certificate: Confirm the portal, filing or transaction and determine the appropriate DSC type.
- Choose a licensed Certifying Authority: DSCs for end users are issued by CAs licensed under the Indian PKI framework.
- Complete identity verification: The applicable CCA/CA-approved verification route may include Aadhaar e-KYC or document-based verification with the required verification process.
- Receive the certificate: The certificate is issued according to the CA's approved process.
- Protect the signing credential: Where the applicable certificate uses a hardware cryptographic device, keep the token and PIN under the control of the authorized signer.
- Install or configure the required signing environment: Depending on the portal, this may include the token driver and signing utility.
- Sign the document or filing: Select the appropriate certificate and complete the portal's signing process.
- Verify the signature: Confirm that the final document shows a valid signature and that the intended signer/certificate information is displayed.
The CCA currently lists licensed CAs providing crypto-token-based DSC services and separately lists eSign service providers.
If you are starting from the certificate requirement rather than the signing process, see What Is a DSC? Complete Guide to Digital Signature Certificates.
How to Create a Digital Signature Using an Approved eSign Service
eSign follows a different model. Instead of giving the signer a reusable certificate and private key to manage, the signing transaction is initiated through an eSign-enabled application or service.
- Open an eSign-enabled document workflow.
- Enter or confirm the signer's required details.
- Authenticate the signer using the authentication method supported by the eSign service.
- Provide explicit consent to sign.
- The eSign service performs the applicable signing process.
- Download or access the digitally signed document.
- Retain the transaction/audit information according to the organization's document-retention requirements.
CCA explains that eSign can use e-KYC authentication, including OTP or biometric authentication through the applicable e-KYC service. It also describes the use of an HSM for creation of the eSign user's private key and destruction of the key after one-time use.
Why a Signature Image Is Not the Same as a Digital Signature
This is one of the most important distinctions for business users.
| Method | What the recipient receives | What it establishes |
|---|---|---|
| Scanned signature image | An image placed on the document | Mainly a visual representation of a handwritten signature |
| DSC digital signature | A cryptographically generated signature associated with a certificate | Signer identity/certificate association and document-integrity verification |
| Approved eSign | A digitally signed electronic record created through an approved eSign workflow | Signer authentication, consent and transaction-specific digital signing evidence |
The Information Technology Act describes digital-signature authentication using asymmetric cryptography and a hash function, while Section 3A provides for reliable electronic-signature/electronic-authentication techniques meeting the prescribed requirements.
For Businesses, the Real Question Is: Who Needs to Sign What?
A business may need more than one signing method because its documents have different destinations.
Company / LLP
Use a DSC where statutory or portal-based filing requires certificate authentication. For private agreements and customer workflows, evaluate eSign where the receiving workflow supports it.
CA / CS / Tax Professional
A reusable DSC is often central to recurring compliance work. The signer should retain appropriate control of the signing credential rather than treating the DSC as an ordinary login password.
Contractor / Tender Participant
Check the specific e-tender or procurement portal requirement before selecting the signing method. A portal-specific DSC requirement cannot be solved simply by having another type of electronic signature.
HR / Sales / Operations
If employees, customers or vendors need to sign large numbers of routine documents, an integrated signing workflow may be more appropriate than issuing a personal DSC to every signer.
What If Your Business Needs Both DSC and eSign?
Using both is not contradictory.
A business can use a DSC for regulatory and portal-specific activities and an approved eSign workflow for customer-facing or transaction-based documents, provided the respective systems accept those methods.
For example:
- A company director may use a DSC for applicable MCA-related filing.
- The same company may use an eSign workflow for customer agreements.
- A procurement team may use a DSC where a tender portal requires it.
- The HR team may use an integrated eSign process for employee documents where the organization's workflow supports it.
This approach avoids forcing every business process into the same signing technology.
Can You Create a Digital Signature Online?
Yes, but “online” can mean two different things.
A DSC can be obtained through an online application and verification process, but the resulting certificate and signing environment may still involve a cryptographic token or other approved credential-management mechanism depending on the certificate and service.
An eSign service is designed as an online signing service. The signer is authenticated during the signing transaction and does not need to manage a reusable physical signing token for that eSign transaction.
CCA's current public information separately identifies crypto-token-based DSC services and eSign service providers.
What Should You Check Before Buying a DSC?
Before placing an order, answer these questions:
- Which portal or application will you use?
- Does it specifically require a DSC?
- Does it accept eSign?
- Are you signing repeatedly or only once?
- Is the signer an individual, director, partner, proprietor, employee or customer?
- Does the workflow require signing only, or signing plus encryption?
- Will one person sign or will hundreds/thousands of people sign?
- Who will control the signing credential?
- Does the business need a USB-token-based workflow, web-based signing or an integrated signing solution?
Answering these questions first can prevent a common purchasing mistake: buying a certificate or token before confirming what the actual application accepts.
DSC, eSign and Signing Solutions: Which Service Fits the Workflow?
eFiling Infotech works across different DSC and digital-signing requirements, so the requirement should be mapped to the actual use case rather than treating every request for a “digital signature” as a token purchase.
| Requirement | Potentially suitable route | What to clarify |
|---|---|---|
| Government portal / compliance filing | DSC | Required class/type and portal compatibility |
| DGFT / foreign-trade filing | DGFT DSC | IEC and portal-specific requirements |
| e-Tendering / e-Procurement | DSC | Portal's certificate and signing requirements |
| Remote customer signing | Approved eSign / signing workflow | Recipient acceptance and authentication requirements |
| Large document volumes | Signing solution / eSign integration | API, workflow, audit trail and document-volume requirements |
| Multiple DSCs/tokens for an organization | Bulk DSC/token supply | Number of users, CA preference, token type and deployment requirements |
If your requirement is certificate-based signing, explore Class 3 Digital Signature and Buy Class 3 Digital Signature.
If the requirement is related to DGFT, see DGFT Digital Signature.
For government procurement workflows, read DSC for e-Tendering: Complete Guide.
What About Web-Based or Cloud-Based Digital Signing?
Businesses increasingly want to sign documents without depending on one computer and one USB token. That creates another distinction: token-based DSC, cloud/web-based certificate workflows and eSign are not automatically interchangeable.
The right model depends on how the private key/signing credential is managed, what the application supports and whether the target portal permits that method.
If you are evaluating signing without a traditional USB workflow, read What Is Cloud-Based Digital Signature? before selecting a solution.
Security: Who Should Control Your Digital Signature?
A DSC should not be treated like an ordinary document that can simply be emailed to anyone who needs to file something on your behalf.
The practical question is who controls the signing credential and who is authorized to use it?
For a business DSC, establish an internal process covering:
- Who is the certificate holder?
- Who is authorized to sign?
- Who controls the token/PIN or signing credentials?
- When can an employee or professional use the DSC?
- How is the credential secured when not in use?
- What happens when the authorized person leaves the organization?
This is especially relevant when a company gives its DSC token to an accountant, consultant or other third party for compliance work. The certificate represents the signer, so organizations should establish authorization and credential-control procedures rather than treating the token as a shared account.
For a deeper technical explanation, read What Makes Digital Signatures Secure? and Document Integrity Through Digital Signature Certificate.
Common Mistakes When People Search “How to Create a Digital Signature”
- Buying a DSC before checking the portal requirement.
- Assuming an eSign can replace a DSC everywhere.
- Assuming a scanned signature image is a digital signature.
- Buying an encryption-enabled certificate when only signing is required.
- Ignoring the certificate requirements of a specific tender or government portal.
- Giving a DSC token and PIN to multiple people without an internal control process.
- Assuming every “online digital signature” product uses the same technology.
- Choosing a signing solution based only on price rather than acceptance, workflow and credential control.
Frequently Asked Questions
How do I create a digital signature?
You can create a digital signature using a Digital Signature Certificate (DSC) issued through a licensed Certifying Authority, or through an approved eSign service where the relevant application supports it. The correct method depends on where the signature will be used.
Can I create a digital signature online?
Yes. DSC applications can use online verification workflows, while eSign is specifically designed as an online electronic-signature service. However, an online DSC application does not necessarily mean the resulting signing credential is token-free.
Is eSign the same as DSC?
No. A DSC is a digital certificate used to create signatures through a certificate-based signing process. eSign is an online electronic-signature service that uses an approved authentication and signing workflow. CCA lists DSC and eSign as distinct service categories.
Can eSign replace a DSC?
Not universally. If a particular portal or regulatory workflow specifically requires DSC-based signing, an eSign service should not be assumed to be an alternative. If the application accepts an approved eSign workflow, eSign may be suitable.
Can I use a scanned signature image as a digital signature?
A scanned signature image is simply an image inserted into a document. It should not be confused with a cryptographically generated DSC-based digital signature or an approved eSign transaction.
Do I need a USB token to create a digital signature?
If you are using a certificate-based DSC whose private key is required to be stored in an approved hardware cryptographic device, a compatible token is part of that workflow. An eSign service does not require the signer to carry a reusable USB token for each transaction.
Which digital signature is required for e-Tendering?
Check the specific e-tender or e-procurement portal requirements. Many procurement workflows use DSC-based authentication, but the exact certificate/signing requirement should be confirmed from the relevant portal or tender documentation.
Which digital signature is required for DGFT?
DGFT users should follow the current DGFT certificate and portal requirements, including the relationship between the DSC details and IEC/profile information. For a practical guide, see DGFT Digital Signature.
Can a company use both DSC and eSign?
Yes. A company can use a DSC for workflows that require certificate-based authentication and an approved eSign workflow for documents where eSign is supported. Using both can make sense when regulatory filings and customer-facing document signing have different requirements.
Can I use my DSC for signing multiple documents?
A reusable DSC can generally be used for multiple signing operations during its validity, subject to the certificate's scope, security controls and the application's requirements.
How do I know whether I need a DSC or eSign?
Start with the receiving portal or document workflow. If it explicitly requires DSC, obtain the appropriate DSC. If it supports an approved eSign service, evaluate eSign. If neither requirement is clear, confirm with the portal/operator before purchasing a signing product.
Need Help Choosing the Right Digital Signing Method?
eFiling Infotech can help businesses map their requirement to the appropriate DSC, certificate type, token or digital-signing workflow instead of treating every “digital signature” requirement as the same product.
Tell us what you need to sign, which portal or application you will use, who will sign, and approximately how often you will sign. That information is usually enough to determine whether you should investigate a DSC, an approved eSign workflow or a broader signing solution.
Read More: Digital Signature & eSign Guides
- What Is DSC? Complete Guide to Digital Signature Certificates — Understand DSC fundamentals, types and common applications.
- Documents Required for DSC — Check document requirements by applicant and organization type.
- How Does a Digital Signature Work? — Understand the signing and verification process.
- What Makes Digital Signatures Secure? — Explore certificate, key and signature security.
- Document Integrity Through Digital Signature Certificate — Understand how signing helps detect document changes.
- How to Renew Digital Signature Certificate — What to check when an existing DSC is nearing expiry.
- What Is Cloud-Based Digital Signature? — Compare remote/web-based signing with traditional token workflows.
- Class III Encryption Digital Signature Certificate — Understand when signing and encryption requirements differ.
- Benefits of Digital Signature Certificate — Explore the operational benefits of certificate-based signing.
- Importance of DSC for Statutory Requirements — Understand why particular filings require certificate-based authentication.
